1. PAYMENTS TO FOREIGN NATIONALSPAYMENTS TO FOREIGN NATIONALS

2. FIRST AND FOREMOSTFIRST AND FOREMOST University Policies and Procedures are driven by and responsive to IRS regulations.

3. FOREIGN NATIONALSFOREIGN NATIONALS The IRS distinguishes between two types of foreign nationals for federal income tax purposes; resident aliens (RAs) and nonresident aliens (NRAs).

4. NON-RESIDENT ALIEN DEFINEDNON-RESIDENT ALIEN DEFINED A nonresident alien is a non-United States citizen who does not satisfy either the "green card test“, or the "substantial presence test" during the calendar year.

5. RESIDENT ALIEN DEFINEDRESIDENT ALIEN DEFINED A resident alien is a non-United States citizen who satisfies either the "green card test" or the "substantial presence test" during the calendar year.

6. PAYMENTS TO FOREIGN NATIONALSPAYMENTS TO FOREIGN NATIONALS Payments to non- resident aliens (and some resident aliens) are subject to special taxability and reporting rules.

7. PAYMENT TYPESPAYMENT TYPES Travel Reimbursements Honoraria Human subject payments Awards

8. PAYMENT AMOUNTSPAYMENT AMOUNTS There is no threshold. These policies and procedures are in effect regardless of the dollar amount.

9. RESTRICTIONS ON PAYMENTS TO FOREIGN NATIONALS Foreign nationals may not receive merchandise, gift cards or e-cards as a form of payment in cases of awards, prizes, or human subject payments.

10. VISA TYPESVISA TYPES It is imperative that the visa type is known well in advance the payment. Payment types are restricted by visa type. Not all visas holders may receive all payment types.

11. HOW TO PAY A FOREIGN NATIONALHOW TO PAY A FOREIGN NATIONAL Let BHRSC staff (Candy, Carole, or Kathie) know as soon as possible that you may or will have a foreign national payment. Providing the following information is extremely helpful: Name UIN (if available) Contact information Visa Type Reason for payment and payment C-FOP

12. TAXES – WHO PAYS?TAXES – WHO PAYS? If answered “Yes” the any applicable U.S. taxes will be charged to the C- FOP provided. If answered “No” the individual will be responsible for any resulting taxes. BHRSC will ask if you want the payment grossed up for taxes –

13. WHAT HAPPENS NEXT?WHAT HAPPENS NEXT? A staff member will contact the individual. They will send them the following forms – Foreign National Tax Information Form – Banner Vendor From (if no UIN is available)

14. WHAT HAPPENS NEXTWHAT HAPPENS NEXT The individual will need to visit room 111 BHRSC with the requested documents to see a staff member (Candy, Carole, or Kathie). The documents will then be copied, and returned to the individual. In some cases, the individual will need to sign several forms.

15. WHAT HAPPENS NEXT?WHAT HAPPENS NEXT? A BHRSC staff member will process the payment form, attach the required documents, and forward everything to University Payroll. University Payroll will review the paperwork, and process the payment.